SAVINGS PLAN CALCULATOR

A savings plan calculator is a free online tool that helps you plan and calculate your financial savings goals. With our calculator, you can either determine how much capital you will accumulate with a specific monthly savings amount after a set period, or calculate what amount you need to save monthly to reach a specific savings goal. The calculator also considers interest earnings with compound interest effect and optional starting capital, giving you a realistic forecast of your wealth development.

The calculation follows the mathematical formula for annuity calculation with compound interest. When calculating the target amount, your monthly deposits are summed over the selected period and earn interest at the specified rate. The compound interest effect is considered, where the interest already earned also generates additional interest. If you specify starting capital, it is also invested with interest over the entire period. When calculating the required monthly contribution, the formula is reversed to determine the regular savings amount necessary to reach your savings goal.

Our savings plan calculator offers two calculation modes: In the first mode "Calculate target amount," you enter your desired monthly savings amount, duration, and interest rate. The calculator then shows you what final capital you will reach at the end of the savings phase. In the second mode "Calculate monthly amount," you enter your desired savings goal, duration, and interest rate. The calculator then determines the monthly amount you need to save to reach this goal. Both modes consider optional starting capital and show you a detailed breakdown with interest earnings and the development of your capital over time.

The compound interest effect is an important factor in long-term saving. Our calculator calculates interest monthly on the existing capital. This means: In the first month, interest is calculated on your starting capital and the first deposit. In the second month, interest is calculated on the already interest-bearing capital plus the new deposit, and so on. This effect amplifies considerably over time. For example, with an interest rate of 4% p.a. and a monthly savings rate of €200 over 20 years, interest earnings amount to over €14,000, while total deposits are only €48,000. The longer the period and the higher the interest rate, the stronger the compound interest effect.

Realistic interest rates depend heavily on the chosen investment type. For traditional savings accounts or call money accounts, interest rates currently range between 0% and 3% p.a. Fixed-term deposits can offer 2-4% p.a. depending on duration. ETF savings plans on broadly diversified stock indices have historically achieved average returns of 6-8% p.a., but are subject to fluctuations. Fund-linked savings plans typically range between 4-7% p.a. Important: Higher returns generally come with higher risks. For conservative calculations, we recommend assuming 2-4%, for medium-term investments 4-6%, and only for long-term ETF savings plans 6-8%. Also consider inflation and taxes.

Gross interest income is the total amount of interest your savings investment generates before taxes and fees are deducted. Our calculator initially shows these gross values. In Germany, capital gains are subject to withholding tax of 25% plus solidarity surcharge (5.5% on the tax) and possibly church tax, totaling about 26.375% to 27.995%. Net interest income is the amount remaining after deducting these taxes. However, there is a saver's allowance of €1,000 per person (€2,000 for married couples), up to which capital gains are tax-free. For long-term savings plans, you should therefore calculate with about 73% to 75% of gross interest income for your net return.

Starting capital can significantly accelerate your savings success but is not mandatory. The advantage of starting capital is that it earns interest over the entire period and thus benefits from the compound interest effect. An example: With a savings plan over 15 years with €200 monthly rate and 5% interest, you reach about €53,400 without starting capital. With starting capital of €10,000, you reach about €74,200 under the same conditions – €20,800 more than the deposited starting capital, through the compound interest effect. Even smaller starting amounts of €1,000-5,000 can make a noticeable difference over long periods. If you have starting capital available, it almost always pays to include it in the savings plan.

The optimal duration depends on your savings goal and life situation. For short-term goals (1-3 years) like vacation, car, or emergency fund, flexible savings forms with daily availability are suitable. Medium-term goals (3-10 years) like a property down payment or major purchases benefit from fixed deposits or conservative fund savings plans. Long-term goals (10+ years) like retirement provision or wealth building should be pursued with ETF savings plans, as the compound interest effect works strongest here and market fluctuations can be balanced out. Basic rule: The longer the duration, the higher the risk (and thus potential return) can be. For maximum compound interest effect, we recommend at least 10-15 years investment period.

The flexibility of your savings plan depends on the chosen investment type. ETF savings plans usually offer maximum flexibility: You can increase, decrease, pause the savings rate at any time, or make additional one-time payments without fees or penalties. Early withdrawals are also usually problem-free. Bank savings plans and fixed deposits are less flexible – here you are often bound for the agreed period, early terminations lead to interest losses. Building savings contracts and insurance savings plans often have strict conditions and high costs for early termination. Our tip: For regular saving, choose flexible products like ETF savings plans with online brokers that you can adapt to your life situation.

The best start is to first define your savings goals: What do you want to achieve and by when? Then analyze your monthly income and expenses to determine a realistic savings amount – start with a smaller amount you can reliably afford rather than too high an amount you can't maintain. Use our calculator to simulate different scenarios. Then choose the appropriate investment type: call money for short-term goals, ETF savings plans for long-term goals. Set up a standing order, ideally right after salary receipt, so saving happens automatically. Review your savings plan at least annually and adjust it with salary increases or changed life circumstances. Important: First establish an emergency fund of 3-6 monthly salaries in a call money account before starting long-term savings plans.